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Abstract
Although spending time in a summer home is a popular leisure activity in many developed
countries, little is known about the welfare impacts of such recreation in monetary terms. We use
data from Finland to provide first estimates of the extent of the recreation benefits obtained from
visits to second homes. Special emphasis is placed on how environmental attributes of second
homes, such as the presence of algae, the availability of a beach, and electricity, influence the
recreation value of visits. The impacts are valued through revealed preferences using the travel cost
method. We estimate the recreation value to be about EUR 170 – 205 per trip if a summer home is
electrified, if a beach is available and if algae do not prevent aquatic recreation. The aggregate nonmarket
benefits of the use of the current summer home stock are considerable – about EUR 500
million per annum. The presence of algae that prevent aquatic recreation decreases the value per trip
by 40 percent, and the lack of a beach reduces it by 45 percent; electrification increases the value by
3–5 percent. These impacts should be balanced against the social costs of second homes when
designing environmental policies on leisure-time housing.